From a survey conducted by Deloitte, more than 80% of the leaders agree that analytics is essential for their organization. However, only around 20% of them invest it. If analytics is the way to go for improving the way HR works and help businesses grow. Why is there a lesser adoption rate?
There is lesser awareness about people analytics solution. Business leaders believe that people analytics is right for their HR functions. However, there are unaware about what it offers to help achieve business goals.
There is a popular misconception that analytics are expensive and way too complicated. This misinformation has created a barrier for small and mid-size companies to invest in people analytics solutions. Until recently, people analytics was pricey and required a lot of time. It was only possible for large organizations to invest in it, since big organizations have the budget and all the possible resources necessary to build a people analytics platform. It is precisely the reason why most of the small and mid-size companies could never invest in people analytics tools.
There is a struggle for organizations to decide whether they need a people analytics solution. HR teams often fear that wrong or uninformed decisions are a result of using incorrect data. However, they fail to realize that with analytics, you can make fact-based and accurate analysis.
HR reporting is not the same and people analytics
HR reports are not analytics, what you fetch from your transactional systems like HRMS, LMS, Accounts Payable Systems, etc. Analytics can turn all your data into actionable insights.
HR reporting provides HR teams with visual graphs, charts, downloadable excel sheets, etc. These reports are mere HR data. However, with a people analytics solution-HR teams can connect all the data from different reports and sources, normalize it, transform and then use It to explore and drive change. Analytics helps in summarizing information and not just display data. Reporting is extremely valuable. However, understanding the relevance of your data and using it to empower your organization is putting it to good use.
If you’re looking to invest in a people analytics platform, it is imperative to understand what it offers and what benefits to expect.
With the help of a people analytics solution, you can keep track of your data. With it, you can understand your data and not just use it. It helps you to make sense of the data, and the solutions can transform huge piles of unusable data into meaningful information for your benefit.
You are getting an understanding of your workforce with people analytics. Although HR isn’t a revenue generator, it adds business value. Unlike just using your HR data, with analytics, you can add business value by improving your hiring strategies based on the analytics. Same goes for growth-related strategy, diversity and retention models.
Interpreting your data is essential; this can be done in a better way if you know and understand your data. Leaders no longer make decisions based on gut feeling. Decision made are based on facts. Analytics provides the facts and precise analysis, helping HR teams to know their people, processes and business better.
Do small and mid-size companies require a people analytics solution?
Well, of course they do. It is easy to assume that small companies might not have that much data to generate insights from a people analytics solution. On the contrary, it can have a significant impact like:
People analytics platforms acts like an in-house HR data analyst. It will operate for you at a lower cost and help with algorithms, machine learning, complex equations, etc. It helps HR teams to transform raw data to find answers. It allows users and leaders to ask better questions, get the required answers, solve issues, and gain information and understanding of the existing and upcoming issues.
It is essential to know who your most valuable asset is? How can you stay ahead in the competition? People analytics provides easy access to information for faster decision making.
You can start small with people analytics and go big with it. It meets all the needs of any organization, irrespective of the size and scope.
Organizations must take steps towards implementing a people analytics platform. As your organization helps the analytics solution grow with time, the people analytics solution will help your organization grow too.
